The foreclosure crisis and POTUS 2012

[musiclawyer]

I know a lady and her husband in my neighborhood. They paid their mortgage for 27 years. In year 28, they ran into hard times, and made a partial payment one month. Skipped a month, and then paid in full the next month to be current. The bank cashed thier check yet still foreclosed. The sheriff escorted them out of the house. The got a lawyer. The lawyers says the bank ( wells fargo) is a defendant in a class action because they totally violated notice and cure provisions. He offered them the option of joining the existing class action, or suing separately. ..... They are middle class people now living out of their car and the spare room of friends. Multiply this by millions, and these are not even people to whom the crappy loans were sold who could not afford the ARMs ........... IMHO POTUS must address the problem of these people. There are lots of threads out there about how the administration failed by not fighting for the bankruptcy cramdown etc..... No need to cover old ground either. The point is POTUS needs to make the general public thinks he gives a shit about these people, or he loses in 2012 (the economy recovering and current polling notwithstanding). This is very frightening to me because these people who are hurting WILL vote and WILL vote to oust the incumbent without think about the consequences unless they think they are getting real relief. The horse is out the barn really, but making some high profile indictments of some bankers might be good enough. Feel free to discuss.

[OneTenthofOnePercent]

1. With 27 years of equity in the house... they should get a decent check when the house is auctioned

At auction, any amount over the owed amounts would be returned to the previous mortgage owner.

Nevertheless, I think they should have refinanced as soon as times got tough.
With that much equity, refi should be a breeze.

I think there is more to this story.

[DirkGently]

2. Bankruptcy relief is still relevant. Reports are that the Pres. personally lobbied against it.